Wilshire Bancorp, Inc. (Nasdaq:WIBC) (the "Company"), the holding
company for Wilshire Bank (the "Bank"), today reported net income
available to common shareholders of $13.1 million, or $0.17 per
diluted common share, for the quarter ended March 31, 2014. This
compares to net income available to common shareholders of $11.6
million, or $0.16 per diluted common share, for the same period of
the prior year, and net income available to common shareholders of
$10.9 million, or $0.15 per diluted common share, for the fourth
quarter of 2013. Financial results for the first quarter of 2014
include $3.4 million in merger-related expenses attributable to the
acquisition and integration of BankAsiana and Saehan Bancorp.
Jae Whan (J.W.) Yoo, President and CEO of Wilshire Bancorp,
said, "We are seeing a strong increase in our core earnings power
as a result of the acquisitions of BankAsiana and Saehan Bancorp
late in 2013. Compared to the first quarter of 2013, our total
revenue increased 34%, and our pre-tax, pre-provision income
increased by 17%. We are also seeing an improvement in our deposit
mix resulting from our focus on developing more core deposit
relationships. Our non-interest bearing deposits now represent the
largest component of our total deposits, which has resulted in a
decline in our cost of funds. We are pleased that the increase in
our core earnings power and strong financial position has enabled
us to increase the amount of capital we can return to our
shareholders, with a 67% increase in our quarterly dividend."
Q1 2014 Summary
- Net income available to common shareholders totaled
$13.1 million, or $0.17 per diluted common share, for the first
quarter of 2014
- Total revenue of $50.3 million, an increase of 34% from
the first quarter of 2013
- Return on average assets of 1.44% and return on average
equity of 11.73% for the first quarter of 2014
- Loans receivable (net of deferred fees and costs)
totaled $2.87 billion at March 31, 2014, an increase of 40% from
$2.05 billion at March 31, 2013
- Total deposits were $2.92 billion at March 31, 2014, an
increase of 35% from $2.16 billion at March 31, 2013
- Continued low credit losses and stable trends in assets
quality resulted in no provision for losses on loans and loan
commitments for Q1 2014
- Quarterly cash dividend payable on April 15, 2014
increased to $0.05 per common share
STATEMENT OF OPERATIONS
Pre-Tax, Pre-Provision Income
Pre-tax, pre-provision income ("PTPP") was $19.9 million for the
first quarter of 2014, compared with $17.0 million for the first
quarter of 2013, and $17.0 million for the fourth quarter of 2013.
Excluding merger-related expenses, PTPP was $23.3 million for the
first quarter of 2014, compared with $18.8 million for the fourth
quarter of 2013. PTPP is a Non-GAAP measure of financial
performance. Please refer to the "Reconciliation of GAAP Financial
Measures to Non-GAAP Financial Measures" table at the end of this
press release for a reconciliation of PTPP to net income and
important information about Non-GAAP measures of financial
performance.
Net Interest Income and Margin
Net interest income before provision for losses on loans and
loan commitments totaled $35.2 million for the first quarter of
2014, an increase of 38% from $25.6 million for the first quarter
of 2013, and an increase of 9% from $32.3 million for the fourth
quarter of 2013. The increase from the prior quarter is primarily
attributable to the full quarter impact of the acquisitions of
Saehan Bancorp and BankAsiana.
Net interest margin was 4.22% for the first quarter of 2014,
compared to 4.20% for the fourth quarter of 2013, and 3.99% for the
first quarter of 2013. Excluding the effect of the
amortization/accretion of the purchase accounting adjustments, the
net interest margin was approximately 3.85% for the first quarter
of 2014, compared with 3.91% for the fourth quarter of 2013. The
decline in net interest margin is primarily attributable to a
decline in average yield on loans, excluding the effects of
purchase accounting adjustments.
Loan yields were 5.15% for the first quarter of 2014, compared
with 5.17% for the fourth quarter of 2013, and 5.06% for the first
quarter of 2013. Excluding the effect of the accretion of the
purchase accounting adjustments, loan yields were 4.77% for the
first quarter of 2014, compared to 4.86% for the fourth quarter of
2013.
The total cost of deposits was 0.51% for the first quarter of
2014, compared with 0.53% for the fourth quarter of 2013, and 0.53%
for the first quarter of 2013.
Non-Interest Income
Total non-interest income was $11.0 million for the first
quarter of 2014, compared to $8.7 million for the first quarter of
2013, and $9.3 million for the fourth quarter of 2013. The increase
from the prior quarter was primarily due to a higher net gain on
sale of loans and a higher level of servicing fees earned on
previously sold Small Business Administration ("SBA") loans.
The $4.3 million in net gain on sale of loans recognized during
the first quarter of 2014 consisted substantially of gains from the
sale of SBA loans. Net gain on sale of loans for the fourth quarter
of 2013 was $3.5 million. During the first quarter of 2014, the
Company sold $43.5 million in SBA loans, compared with $43.2
million sold during the fourth quarter of 2013.
Non-Interest Expense
Total non-interest expense was $26.3 million for the first
quarter of 2014, compared with $17.3 million for the first quarter
of 2013, and $24.7 million for the fourth quarter of 2013. The
increase from the prior quarter is primarily attributable to the
full quarter impact of the acquisitions of Saehan Bancorp and
BankAsiana, as well as an increase in merger-related expenses.
Total salaries and employee benefits expense was $12.7 million
for the first quarter of 2014, compared with $8.8 million for the
first quarter of 2013, and $12.9 million for the fourth quarter of
2013. The increase for the first quarter of 2014, compared to the
first quarter of 2013, was primarily due to the impact of personnel
added from the acquisitions of Saehan and BankAsiana, in addition
to an increase in stock based compensation costs from equity grants
made during the first quarter of 2014.
Other non-interest expense for the first quarter of 2014 totaled
$6.0 million, compared with $5.8 million in the first quarter of
2013, and $6.3 million for the fourth quarter of 2013. The
decrease from the prior quarter was primarily attributable to a
decline in losses on low income housing tax credit investments and
legal fees.
Merger-related non-recurring expense was $3.4 million in the
first quarter of 2014 and was primarily related to former Saehan
Bancorp's data processing system de-conversion and contract
termination expenses.
The Company's operating efficiency ratio was 56.9% for the first
quarter of 2014, compared with 50.5% for the first quarter of 2013
and 59.2% for the fourth quarter of 2013.
BALANCE SHEET
Total gross loans receivable were $2.88 billion at March 31,
2014, compared to $2.82 billion at December 31, 2013. The
increase in loans during the first quarter of 2014 was primarily
attributable to growth in the commercial real estate portfolio.
The following table shows gross loans receivable and gross loans
by loan type:
|
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
|
|
|
|
|
|
Construction |
$43,277 |
$40,367 |
$32,119 |
$36,371 |
$34,030 |
Real Estate Secured |
2,401,203 |
2,332,121 |
1,819,052 |
1,715,567 |
1,695,980 |
Commercial & Industrial |
419,313 |
437,524 |
342,057 |
337,057 |
313,645 |
Consumer |
16,100 |
14,694 |
9,637 |
11,089 |
11,684 |
Gross Loans Receivable * |
2,879,893 |
2,824,706 |
2,202,865 |
2,100,084 |
2,055,339 |
Held-For-Sale Loans |
27,791 |
47,557 |
56,065 |
60,910 |
134,129 |
Total Gross Loans * |
$2,907,684 |
$2,872,263 |
$2,258,930 |
$2,160,994 |
$2,189,468 |
|
|
|
|
|
|
* Gross loans
receivable and total gross loans are not net of deferred fees and
costs as shown in the consolidated balance sheet presentation |
The following table presents the March 31, 2014 balance of gross
loans by loan type and broken out by legacy Wilshire loans and
loans acquired from former Mirae Bank, BankAsiana, and Saehan
Bancorp.
|
Quarter Ended March 31,
2014 |
(Dollars In Thousands) (Unaudited) |
BankAsiana* |
Saehan Bancorp* |
Mirae Bank* |
Legacy Wilshire |
Total |
|
|
|
|
|
|
Construction |
$5,772 |
$ -- |
$ -- |
$37,505 |
$43,277 |
Real Estate Secured |
112,703 |
336,608 |
66,387 |
1,885,505 |
2,401,203 |
Commercial & Industrial |
32,926 |
32,355 |
4,847 |
349,185 |
419,313 |
Consumer |
9 |
1,308 |
2 |
14,781 |
16,100 |
Gross Loans Receivable |
151,410 |
370,271 |
71,236 |
2,286,976 |
2,879,893 |
Held-For-Sale Loans |
257 |
189 |
-- |
27,345 |
27,791 |
Total Gross Loans |
$151,667 |
$370,460 |
$71,236 |
$2,314,321 |
$2,907,684 |
|
|
|
|
|
|
* Represents loans balances
net of fair value adjustment |
|
|
|
|
The following table shows quarterly loan originations by loan
type:
|
Quarter
Ended |
|
|
|
|
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
Real Estate Secured |
$96,266 |
49% |
$132,780 |
60% |
$145,361 |
68% |
$93,606 |
48% |
$86,839 |
45% |
Commercial & Industrial |
36,619 |
18% |
30,541 |
14% |
23,710 |
11% |
40,927 |
21% |
55,096 |
29% |
Consumer |
632 |
0% |
546 |
0% |
540 |
0% |
75 |
0% |
537 |
0% |
SBA |
35,305 |
18% |
44,599 |
20% |
36,001 |
17% |
40,209 |
21% |
27,379 |
14% |
Residential Mortgage |
29,063 |
15% |
13,858 |
6% |
8,714 |
4% |
20,022 |
10% |
22,831 |
12% |
Total Loan Originations |
$197,885 |
100% |
$222,324 |
100% |
$214,326 |
100% |
$194,839 |
100% |
$192,682 |
100% |
Originations for the first quarter of 2014 were $197.9 million,
compared with $222.3 million for the fourth quarter of 2013 and
$192.7 million for the first quarter of 2013. The decrease from the
previous quarter was primarily due to seasonally slower loan
production typically experienced during the beginning of the
year.
Total SBA loans held-for-sale at the end of the first quarter of
2014 were $26.8 million, compared to $45.6 million at the end of
the previous quarter. The decision to retain or sell SBA
loans is made on a quarter-to-quarter basis, depending on
prevailing pricing in the secondary market and the Company's
liquidity needs.
Total deposits were $2.92 billion at March 31, 2014, compared
with $2.87 billion at December 31, 2013. The increase in total
deposits was primarily attributable to growth in non-interest
bearing demand deposits, which was partially offset by a decline in
time deposits. Toward the end of the first quarter of 2014,
$29.8 million in brokered time deposits with a rate of 3.40%
matured.
CREDIT QUALITY
The Company continued to experience relatively stable asset
quality and a low level of credit losses during the first quarter
of 2014. Accordingly, the Company determined that no provision
for losses on loans and loan commitments was required for the first
quarter of 2014. The allowance for loan losses totaled $53.5
million, or 1.86% of gross loans (excluding loans held-for-sale),
at March 31, 2014, compared to $53.6 million, or 1.90% of gross
loans (excluding loans held-for-sale), at December 31, 2013.
The loans acquired from BankAsiana and Saehan during 2013,
included in this calculation, were recorded at fair value and the
remaining discount on these loans approximated $28.9 million at
March 31, 2014. The coverage ratio of the allowance for loan
losses to non-performing assets was 102.7% at March 31, 2014,
compared with 119.5% at December 31, 2013.
Non-Performing Loans
At March 31, 2014, total non-performing loans were $43.1
million, or 1.48% of total gross loans, compared to $37.2 million,
or 1.30% of total gross loans, at December 31, 2013. The
increase in total non-performing loans is primarily attributable to
two classified commercial loan relationships that were placed on
non-accrual status during the first quarter of 2014.
Non-performing covered loans (previously acquired Mirae Bank
loans covered under FDIC loss share agreement) totaled $6.6 million
at March 31, 2014.
The following table shows total non-performing loans by loan
type:
NON-PERFORMING
LOANS |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Construction |
$ -- |
$2,471 |
$2,471 |
$5,467 |
$5,542 |
Real Estate Secured |
35,988 |
33,569 |
29,568 |
20,090 |
19,366 |
Commercial & Industrial |
7,121 |
1,196 |
1,004 |
1,224 |
1,169 |
Total Non-Performing Loans |
$43,109 |
$37,236 |
$33,043 |
$26,781 |
$26,077 |
Net Charge-offs/Recoveries
During the first quarter of 2014, the Company had total gross
charge-offs of $1.6 million and recoveries of $1.5 million for net
charge-offs of $99,000. Total gross charge-offs were largely
from the former Saehan and Mirae loan portfolio with $850,000 and
$728,000 in gross charge-offs, respectively, for the first quarter
of 2014. Recoveries were primarily from the legacy Wilshire
portfolio with $1.4 million in recoveries during the first quarter
of 2014.
Gross charge-offs and recoveries by loan type are reflected in
the tables below:
GROSS LOAN
CHARGE-OFFS |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Real Estate Secured |
$672 |
$552 |
$2,438 |
$3,668 |
$4,405 |
Commercial & Industrial |
964 |
997 |
764 |
746 |
1,183 |
Consumer |
1 |
2 |
-- |
-- |
1 |
Total Loan Charge-Offs |
$1,637 |
$1,551 |
$3,202 |
$4,414 |
$5,589 |
|
|
|
|
|
|
|
|
|
|
|
|
LOAN RECOVERIES |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Real Estate Secured |
$1,028 |
$2,038 |
$148 |
$340 |
$215 |
Commercial & Industrial |
510 |
679 |
510 |
433 |
658 |
Consumer |
-- |
-- |
4 |
1 |
8 |
Total Loan Recoveries |
$1,538 |
$2,717 |
$662 |
$774 |
$881 |
Other measures of credit quality are shown in the following
tables:
DELINQUENT LOANS
-- By Days Past Due |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
30 - 59 Days Past Due |
$5,756 |
$2,846 |
$2,336 |
$4,993 |
$7,438 |
60 - 89 Days Past Due |
1,526 |
2,527 |
2,827 |
3,637 |
1,193 |
90 Days, and still accruing |
-- |
167 |
-- |
126 |
1,000 |
Total Delinquent Loans |
$7,282 |
$5,540 |
$5,163 |
$8,756 |
$9,631 |
|
|
|
|
|
|
TDR Loans |
|
|
|
|
|
TROUBLED DEBT RESTRUCTURED
LOANS |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Real Estate Secured |
$34,565 |
$30,008 |
$23,133 |
$23,671 |
$23,588 |
Commercial & Industrial |
5,563 |
6,212 |
6,339 |
6,730 |
7,279 |
Total TDR Loans |
$40,128 |
$36,220 |
$29,472 |
$30,401 |
$30,867 |
|
|
|
|
|
|
Classifications |
|
|
|
|
|
LOAN
CLASSIFICATIONS |
Quarter Ended |
(Dollars In Thousands) (Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
(Net of SBA Guaranty Portions) |
|
|
|
|
|
Special Mention |
$101,627 |
$100,798 |
$43,519 |
$49,571 |
$74,553 |
Substandard |
127,996 |
149,479 |
127,855 |
138,319 |
144,521 |
Doubtful |
19,931 |
8,015 |
7,174 |
6,722 |
9,301 |
Total Criticized and Classified
Loans |
$249,554 |
$258,292 |
$178,548 |
$194,612 |
$228,375 |
|
|
|
|
|
|
Classified Loans |
$147,927 |
$157,494 |
$135,029 |
$145,041 |
$153,822 |
CAPITAL RATIOS
All of the Company's capital ratios remain in excess of "well
capitalized" regulatory requirements as shown in the following
table:
(Dollars In Thousands, Except Per Share
Info) |
March 31, 2014 |
Well Capitalized Regulatory
Requirements |
Total Excess Above Well Capitalized
Requirements |
|
|
|
|
Tier 1 Leverage Capital Ratio |
12.50% |
5.00% |
266,850 |
Tier 1 Risk-Based Capital Ratio |
14.92% |
6.00% |
265,804 |
Total Risk-Based Capital Ratio |
16.17% |
10.00% |
184,030 |
Tangible Common Equity To Tangible Assets
* |
10.64% |
N/A |
N/A |
Tangible Common Equity Per Common Share
* |
$4.84 |
N/A |
N/A |
___________________ |
|
|
|
|
|
|
|
* "Tangible Common Equity" and
"Tangible Assets" are Non-GAAP measures of financial
performance. Please refer to the "Reconciliation of GAAP
Financial Measures to Non-GAAP Financial Measures" table at the end
of this press release for a reconciliation of Tangible Common
Equity to Shareholders' Equity and Tangible Assets to Total
Assets. |
Share Repurchase Program
In March 2013, the Board of Directors of Wilshire Bancorp
authorized the repurchase of up to 5% of the Company's outstanding
shares of common stock. During the first quarter of 2014, the
Company did not repurchase any shares. Since the program's
inception, 651,412 shares of common stock were repurchased for a
total price of $4.3 million. The program expired on March 28,
2014.
CONFERENCE CALL
Management will host its quarterly conference call on April 22,
2014, at 11:00 a.m. PT (2:00 p.m. ET). Investment professionals are
invited to participate in the call by dialing 877-703-6105
(domestic number) or 857-244-7304 (international number) and
providing the passcode 72989571.
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire Bancorp is the parent
company of Wilshire Bank, which operates 35 branch offices in
California, Texas, New Jersey and New York, and 7 loan production
offices in Dallas, TX, Atlanta, GA, Aurora, CO, Annandale, VA,
Palisades Park, NJ, Newark, CA, and New York, NY, and is an SBA
preferred lender nationwide. Wilshire Bank is a community bank with
a focus on commercial real estate lending and general commercial
banking, with its primary market encompassing the multi-ethnic
populations of the Los Angeles Metropolitan area. For more
information, please go to www.wilshirebank.com.
FORWARD-LOOKING STATEMENTS
Statements concerning future performance, events, or any other
guidance on future periods constitute forward-looking statements
that are subject to a number of risks and uncertainties that might
cause actual results to differ materially from stated expectations.
Undue reliance should not be placed on forward-looking statements,
as they are subject to risks and uncertainties, including but not
limited to the risk factors set forth in our most recent Annual
Report on Form 10-K and our other filings made from time to time
with the Securities and Exchange Commission. Specific factors
that could cause future results to differ materially from
historical performance and these forward-looking statements
include, but are not limited to: (1) loan production and sales, (2)
credit quality, (3) the ability to expand net interest margin, (4)
the ability to continue to attract low-cost deposits, (5) success
of expansion efforts, (6) competition in the marketplace, (7)
political developments, war or other hostilities, (8) changes in
the interest rate environment, (9) the ability of our borrowers to
repay their loans, (10) the ability to maintain capital
requirements and adequate sources of liquidity, (11) effects of or
changes in accounting policies, (12) legislative or regulatory
changes or actions, (13) the ability to attract and retain key
personnel, (14) the ability to receive dividends from our
subsidiaries, (15) the ability to secure confidential information
through the use of computer systems and telecommunications
networks, (16) weakening in the economy, specifically the real
estate market, either nationally or in the states in which we do
business, (17) the integration of our acquired businesses, and (18)
general economic conditions. The information in this press release
speaks only as of the date of this release and Wilshire Bancorp
specifically disclaims any duty to update the information in this
press release. Additional information on these and other factors
that could affect financial results are included in filings by
Wilshire Bancorp with the Securities and Exchange Commission.
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEET |
|
|
|
|
|
(Dollars In Thousands) (Unaudited) |
March 31, |
December 31, |
Three Months |
March 31, |
Twelve Months |
|
2014 |
2013 |
% Change |
2013 |
% Change |
ASSETS: |
|
|
|
|
|
Cash and Due from Banks |
$160,999 |
$124,064 |
30% |
$86,890 |
85% |
Federal Funds Sold and Other Cash
Equivalents |
7,301 |
46,590 |
-84% |
55,005 |
-87% |
Total Cash and Cash
Equivalents |
168,300 |
170,654 |
-1% |
141,895 |
19% |
|
|
|
|
|
|
Deposits held in other financial
institutions |
21,006 |
21,019 |
0% |
-- |
0% |
|
|
|
|
|
|
Investment Securities Available For
Sale |
342,438 |
352,437 |
-3% |
336,569 |
2% |
Investment Securities Held To
Maturity |
32 |
35 |
-9% |
46 |
-30% |
Total Investment
Securities |
342,470 |
352,472 |
-3% |
336,615 |
2% |
|
|
|
|
|
|
Total Loans
Held-For-Sale |
27,791 |
47,557 |
-42% |
134,129 |
-79% |
|
|
|
|
|
|
Real Estate Construction |
42,124 |
39,268 |
7% |
33,275 |
27% |
Residential Real Estate |
169,810 |
124,373 |
37% |
142,958 |
19% |
Commercial Real Estate |
2,225,677 |
2,190,154 |
2% |
1,549,280 |
44% |
Commercial and Industrial |
417,956 |
448,379 |
-7% |
312,758 |
34% |
Consumer |
16,072 |
14,668 |
10% |
11,666 |
38% |
Total Loans Receivable, Net of Deferred Fees
and Costs |
2,871,639 |
2,816,842 |
2% |
2,049,937 |
40% |
Allowance For Loan Losses |
(53,464) |
(53,563) |
0% |
(58,577) |
-9% |
Loans Receivable, Net of Allowance
for Loan Losses |
2,818,175 |
2,763,279 |
2% |
1,991,360 |
42% |
|
|
|
|
|
|
Accrued Interest Receivable |
8,293 |
8,350 |
-1% |
7,533 |
10% |
Due from Customers on Acceptances |
889 |
1,517 |
-41% |
162 |
449% |
Other Real Estate Owned |
8,969 |
7,600 |
18% |
1,219 |
636% |
Premises and Equipment |
13,313 |
13,862 |
-4% |
11,218 |
19% |
Federal Home Loan Bank (FHLB) Stock, at
Cost |
15,983 |
15,983 |
0% |
11,933 |
34% |
Cash Surrender Value of Life
Insurance |
22,661 |
22,519 |
1% |
22,074 |
3% |
Investment in affordable housing
partnerships |
42,459 |
43,316 |
-2% |
38,334 |
11% |
Deferred Income Taxes |
34,391 |
39,672 |
-13% |
17,135 |
101% |
Servicing Assets |
17,536 |
16,108 |
9% |
10,421 |
68% |
Goodwill |
67,528 |
67,528 |
0% |
6,675 |
912% |
FDIC Indemnification Asset |
2,169 |
4,856 |
-55% |
4,954 |
-56% |
Other Assets |
22,533 |
21,443 |
5% |
20,763 |
9% |
TOTAL ASSETS |
$3,634,466 |
$3,617,735 |
0% |
$2,756,420 |
32% |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY: |
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Non-interest Bearing Demand Deposits |
$869,598 |
$832,152 |
4% |
$593,584 |
46% |
Savings and Interest Checking |
156,587 |
145,549 |
8% |
125,636 |
25% |
Money Market Deposits |
799,299 |
780,280 |
2% |
623,103 |
28% |
Time Deposits in denomination of $100,000
or more |
860,697 |
869,337 |
-1% |
589,502 |
46% |
Other Time Deposits |
237,028 |
244,192 |
-3% |
230,733 |
3% |
Total Deposits |
2,923,209 |
2,871,510 |
2% |
2,162,558 |
35% |
|
|
|
|
|
|
FHLB Borrowings |
150,292 |
190,325 |
-21% |
150,000 |
0% |
Acceptance Outstanding |
889 |
1,517 |
-41% |
162 |
449% |
Junior Subordinated Debentures |
71,610 |
71,550 |
0% |
61,857 |
16% |
Accrued Interest Payable |
2,462 |
2,418 |
2% |
2,056 |
20% |
Other Liabilities |
34,429 |
40,997 |
-16% |
26,074 |
32% |
Total Liabilities |
3,182,891 |
3,178,317 |
0% |
2,402,707 |
32% |
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
Common Stock |
230,979 |
229,836 |
0% |
164,915 |
40% |
Retained Earnings |
218,806 |
209,605 |
4% |
182,405 |
20% |
Accumulated Other Comprehensive
Income |
1,790 |
(23) |
N/A |
6,393 |
-72% |
Total Shareholders'
Equity |
451,575 |
439,418 |
3% |
353,713 |
28% |
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$3,634,466 |
$3,617,735 |
0% |
$2,756,420 |
32% |
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF
OPERATIONS |
|
|
|
|
|
(Dollars In Thousands, Except Per Share Data)
(Unaudited) |
|
|
|
|
|
|
Quarter Ended |
Three Mths |
Quarter Ended |
Twelve Mths |
|
March 31, 2014 |
December 31, 2013 |
% Change |
March 31, 2013 |
% Change |
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
Interest and Fees on Loans |
$37,101 |
$33,954 |
9% |
$26,885 |
38% |
Interest on Investment Securities |
2,101 |
2,075 |
1% |
1,725 |
22% |
Interest on Federal Funds Sold and
Others |
151 |
158 |
-4% |
153 |
-1% |
Total Interest Income |
39,353 |
36,187 |
9% |
28,763 |
37% |
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
Deposits |
3,676 |
3,446 |
7% |
2,849 |
29% |
FHLB Advances and Other Borrowings |
504 |
413 |
22% |
362 |
39% |
Total Interest Expense |
4,180 |
3,859 |
8% |
3,211 |
30% |
|
|
|
|
|
|
Net Interest Income Before Provision for
Losses on Loans and Loan Commitments |
35,173 |
32,328 |
9% |
25,552 |
38% |
Provision for Losses on Loans and Loan
Commitments |
-- |
-- |
0% |
-- |
0% |
|
|
|
|
|
|
Net Interest Income After Provision for
Losses on Loans and Loan Commitments |
35,173 |
32,328 |
9% |
25,552 |
38% |
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
Service Charges on Deposits |
3,146 |
3,002 |
5% |
2,808 |
12% |
Gain on Sales of Loans, Net |
4,329 |
3,980 |
9% |
3,486 |
24% |
Gain on Sale/Call of Investment
Securities |
-- |
4 |
-100% |
-- |
0% |
Other |
3,511 |
2,328 |
51% |
2,411 |
46% |
Total Noninterest Income |
10,986 |
9,314 |
18% |
8,705 |
26% |
|
|
|
|
|
|
NONINTEREST EXPENSES |
|
|
|
|
|
Salaries and Employee Benefits |
12,655 |
12,948 |
-2% |
8,805 |
44% |
FDIC Indemnification
Impairment |
-- |
-- |
0% |
-- |
0% |
Occupancy & Equipment |
3,309 |
2,712 |
22% |
2,040 |
62% |
Data Processing |
963 |
920 |
5% |
675 |
43% |
Merger Related Costs |
3,364 |
1,785 |
88% |
-- |
0% |
Other |
5,966 |
6,288 |
-5% |
5,764 |
4% |
Total Noninterest
Expenses |
26,257 |
24,653 |
7% |
17,284 |
52% |
|
|
|
|
|
|
Income Before Income Taxes |
19,902 |
16,989 |
17% |
16,973 |
17% |
Income Taxes Provision |
6,789 |
6,075 |
12% |
5,384 |
26% |
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS |
$13,113 |
$10,914 |
20% |
$11,589 |
13% |
|
|
|
|
|
|
PER COMMON SHARE
INFORMATION: |
|
|
|
|
|
Basic Income Per Common Share |
$0.17 |
$0.15 |
14% |
$0.16 |
3% |
Diluted Income Per Common
Share |
$0.17 |
$0.15 |
14% |
$0.16 |
3% |
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
Basic |
78,115,779 |
74,082,711 |
|
71,295,673 |
|
Diluted |
78,496,106 |
74,462,668 |
|
71,431,841 |
|
|
|
|
|
|
|
|
SUMMARY OF FINANCIAL
DATA |
|
|
|
|
|
|
(Dollars In Thousands, Except Per Share Data)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
AVERAGE BALANCES |
March 31, 2014 |
|
December 31, 2013 |
|
March 31, 2013 |
|
Average Assets |
$3,631,268 |
|
$3,306,168 |
|
$2,726,058 |
|
Average Equity |
447,188 |
|
401,153 |
|
348,071 |
|
Average Total Loans |
2,881,650 |
|
2,626,557 |
|
2,126,940 |
|
Average Deposits |
2,878,950 |
|
2,610,689 |
|
2,135,445 |
|
Average Time Deposits of $100,000 or
more |
874,039 |
|
801,836 |
|
581,213 |
|
Average FHLB & Other Borrowings |
193,413 |
|
185,182 |
|
150,044 |
|
Average Interest Earning Assets |
3,346,954 |
|
3,093,084 |
|
2,580,456 |
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
PROFITABILITY |
March 31, 2014 |
|
December 31, 2013 |
|
March 31, 2013 |
|
Annualized Return on Average Assets |
1.44% |
|
1.32% |
|
1.70% |
|
Annualized Return on Average Equity |
11.73% |
|
10.88% |
|
13.32% |
|
Efficiency Ratio |
56.88% |
|
59.20% |
|
50.45% |
|
Annualized Operating Expense/Average
Assets |
2.89% |
|
2.98% |
|
2.54% |
|
Annualized Net Interest Margin |
4.22% |
|
4.20% |
|
3.99% |
|
|
|
|
|
|
|
|
|
As Of |
|
March 31, 2014 |
December 31, 2013 |
March 31, 2013 |
DEPOSIT
COMPOSITION |
Percent of Total |
Rate |
Percent of Total |
Rate |
Percent of Total |
Rate |
Noninterest Bearing Demand Deposits |
29.7% |
0.00% |
29.0% |
0.00% |
27.4% |
0.00% |
Savings & Interest Checking |
5.4% |
1.28% |
5.1% |
1.35% |
5.8% |
1.51% |
Money Market Deposits |
27.3% |
0.66% |
27.2% |
0.65% |
28.8% |
0.63% |
Time Deposits of $100,000 or More |
29.4% |
0.68% |
30.3% |
0.69% |
27.3% |
0.64% |
Other Time Deposits |
8.1% |
0.67% |
8.5% |
0.81% |
10.7% |
0.80% |
Total Deposits |
100.0% |
0.51% |
100.0% |
0.53% |
100.0% |
0.53% |
|
|
|
|
|
|
|
|
As Of |
|
CAPITAL RATIOS |
March 31, 2014 |
|
December 31, 2013 |
|
March 31, 2013 |
|
Tier 1 Leverage Ratio |
12.50% |
|
13.32% |
|
14.72% |
|
Tier 1 Risk-Based Capital Ratio |
14.92% |
|
14.65% |
|
18.72% |
|
Total Risk-Based Capital Ratio |
16.17% |
|
15.91% |
|
19.99% |
|
Total Shareholders' Equity |
$451,575 |
|
$439,418 |
|
$353,713 |
|
Book Value Per Common Share |
$5.77 |
|
$5.63 |
|
$4.96 |
|
Tangible Common Equity Per Common Share
* |
$4.84 |
|
$4.70 |
|
$4.85 |
|
Tangible Common Equity to Tangible Assets
** |
10.64% |
|
10.22% |
|
12.59% |
|
|
|
|
|
|
|
|
* Tangible common equity excludes
goodwill, other intangible assets |
|
** Tangible assets excludes
goodwill and intangible assets |
|
|
|
|
|
|
|
ALLOWANCE FOR LOAN
LOSSES |
|
|
|
|
|
(Dollars In Thousands) (Unaudited) |
|
|
|
|
|
|
Quarter Ended |
|
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
|
|
|
|
|
|
Balance at Beginning of Period |
$53,563 |
$52,397 |
$54,937 |
$58,577 |
$63,285 |
Provision for Losses on Loans |
-- |
-- |
-- |
-- |
-- |
Recoveries on Loans Previously
Charged-off |
1,538 |
2,717 |
662 |
774 |
881 |
Gross Loan Charge-offs |
(1,637) |
(1,551) |
(3,202) |
(4,414) |
(5,589) |
Balance at End of Period |
$53,464 |
$53,563 |
$52,397 |
$54,937 |
$58,577 |
|
|
|
|
|
|
Net Loan Charge-offs/Average Net Loans |
0.00% |
-0.04% |
0.12% |
0.17% |
0.23% |
Charge-offs/Average Total Loans |
0.06% |
0.06% |
0.15% |
0.21% |
0.27% |
Allowance for Loan Losses/Gross Loans * |
1.86% |
1.90% |
2.38% |
2.62% |
2.85% |
Allowance for Loan Losses/Legacy Wilshire
Loans * |
1.90% |
1.95% |
2.48% |
2.75% |
3.01% |
Allowance for Loan Losses/Non-accrual
Loans |
124.02% |
144.50% |
158.57% |
206.10% |
233.59% |
Allowance for Loan Losses/Non-performing
Loans |
124.02% |
144.85% |
158.57% |
205.13% |
224.63% |
Allowance for Loan Losses/Non-performing
Assets |
102.66% |
119.46% |
155.06% |
197.88% |
214.60% |
Allowance for Loan Losses/Classified
Loans |
34.01% |
34.01% |
38.80% |
37.88% |
38.08% |
|
|
|
|
|
|
* Excluding held-for-sale loans |
|
|
|
|
|
|
|
|
|
|
|
NON-PERFORMING ASSETS |
|
|
|
|
|
(Dollars In Thousands, Net of SBA
Guaranty) |
Quarter Ended |
(Unaudited) |
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
|
|
|
|
|
|
Non-accrual Loans |
$43,109 |
$37,068 |
$33,043 |
$26,655 |
$25,077 |
Loans 90 days or more past due and still
accruing |
-- |
168 |
-- |
126 |
1,000 |
Total Non-performing Loans |
43,109 |
37,236 |
33,043 |
26,781 |
26,077 |
|
|
|
|
|
|
Total OREO |
8,969 |
7,600 |
748 |
982 |
1,219 |
|
|
|
|
|
|
Total Non-performing Assets |
$52,078 |
$44,836 |
$33,791 |
$27,763 |
$27,296 |
|
|
|
|
|
|
Total Non-performing Loans/Gross Loans |
1.48% |
1.30% |
1.46% |
1.24% |
1.19% |
Total Non-performing Assets/Total Assets |
1.43% |
1.24% |
1.19% |
1.00% |
0.99% |
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR OFF-BALANCE SHEET
ITEMS |
|
|
|
|
|
(Dollars In Thousands) (Unaudited) |
Quarter Ended |
|
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
|
|
|
|
|
|
Balance at beginning of period |
$1,061 |
$1,061 |
$1,023 |
$1,023 |
$1,023 |
Credit for losses on off-balance sheet
items |
-- |
-- |
-- |
-- |
-- |
Balance at end of period |
$1,061 |
$1,061 |
$1,023 |
$1,023 |
$1,023 |
|
|
|
|
|
|
|
|
|
|
WILSHIRE
BANCORP, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES
PAID |
|
|
|
|
|
|
|
|
|
(Dollars In Thousands) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended |
|
March 31,
2014 |
December 31,
2013 |
March 31,
2013 |
|
|
|
|
|
|
|
|
|
|
|
Average |
Interest |
Average |
Average |
Interest |
Average |
Average |
Interest |
Average |
|
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
Balance |
Income/ |
Yield/ |
INTEREST EARNING ASSETS |
|
Expense |
Rate |
|
Expense |
Rate |
|
Expense |
Rate |
|
|
|
|
|
|
|
|
|
|
LOANS: |
|
|
|
|
|
|
|
|
|
Real Estate Loans |
$2,447,610 |
$31,008 |
5.07% |
$2,211,155 |
$27,780 |
5.03% |
$1,804,496 |
$22,435 |
4.97% |
Commercial Loans |
430,076 |
4,919 |
4.58% |
411,421 |
5,143 |
5.00% |
314,389 |
3,630 |
4.62% |
Consumer Loans |
11,873 |
118 |
3.98% |
10,647 |
100 |
3.76% |
12,827 |
80 |
2.50% |
Total Gross Loans |
2,889,559 |
36,045 |
4.99% |
2,633,223 |
33,023 |
5.02% |
2,131,712 |
26,145 |
4.91% |
Deferred Fees and Costs Loan Fees |
(7,909) |
1,056 |
|
(6,666) |
931 |
|
(4,772) |
740 |
|
Total Loans * |
2,881,650 |
37,101 |
5.15% |
2,626,557 |
33,954 |
5.17% |
2,126,940 |
26,885 |
5.06% |
|
|
|
|
|
|
|
|
|
|
INVESTMENT SECURITIES
AND |
|
|
|
|
|
|
|
|
|
OTHER INTEREST-EARNING
ASSETS: |
|
|
|
|
|
|
|
|
|
Investment Securities** |
349,701 |
2,101 |
2.60% |
347,082 |
2,075 |
2.60% |
324,261 |
1,725 |
2.37% |
Deposits Held In Other Institutions |
21,019 |
69 |
1.31% |
13,593 |
38 |
1.12% |
-- |
-- |
0.00% |
Federal Funds Sold & Others |
94,584 |
82 |
0.35% |
105,852 |
120 |
0.45% |
129,255 |
153 |
0.47% |
Total Investment Securities
and |
|
|
|
|
|
|
|
|
|
Other Earning
Assets |
465,304 |
2,252 |
2.09% |
466,527 |
2,233 |
2.07% |
453,516 |
1,878 |
1.83% |
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST-EARNING
ASSETS |
$3,346,954 |
$39,353 |
4.72% |
$3,093,084 |
$36,187 |
4.70% |
$2,580,456 |
$28,763 |
4.49% |
|
|
|
|
|
|
|
|
|
|
Total Non-Interest Earning Assets |
284,314 |
|
|
213,084 |
|
|
145,602 |
|
|
TOTAL ASSETS |
$3,631,268 |
|
|
$3,306,168 |
|
|
$2,726,058 |
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST BEARING
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST-BEARING
DEPOSITS: |
|
|
|
|
|
|
|
|
|
Money Market |
$784,219 |
$1,301 |
0.66% |
$687,948 |
$1,121 |
0.65% |
$623,471 |
$976 |
0.63% |
NOW |
32,019 |
15 |
0.19% |
29,212 |
15 |
0.21% |
25,958 |
12 |
0.19% |
Savings |
120,908 |
476 |
1.58% |
109,304 |
452 |
1.65% |
100,560 |
464 |
1.85% |
Time Deposits of $100,000 or More |
874,039 |
1,485 |
0.68% |
801,836 |
1,384 |
0.69% |
581,213 |
924 |
0.64% |
Other Time Deposits |
236,826 |
399 |
0.67% |
231,821 |
474 |
0.82% |
235,862 |
473 |
0.80% |
Total Interest Bearing
Deposits |
2,048,011 |
3,676 |
0.72% |
1,860,121 |
3,446 |
0.74% |
1,567,064 |
2,849 |
0.73% |
|
|
|
|
|
|
|
|
|
|
BORROWINGS: |
|
|
|
|
|
|
|
|
|
FHLB Advances and Other Borrowings |
193,413 |
74 |
0.15% |
185,182 |
64 |
0.14% |
150,044 |
80 |
0.21% |
Junior Subordinated Debentures |
71,573 |
430 |
2.40% |
66,275 |
349 |
2.11% |
61,857 |
282 |
1.82% |
Total Borrowings |
264,986 |
504 |
0.76% |
251,457 |
413 |
0.66% |
211,901 |
362 |
0.68% |
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST BEARING
LIABILITIES |
$2,312,997 |
$4,180 |
0.72% |
$2,111,578 |
$3,859 |
0.73% |
$1,778,965 |
$3,211 |
0.72% |
|
|
|
|
|
|
|
|
|
|
Non-Interest Bearing Deposits |
830,939 |
|
|
750,568 |
|
|
568,381 |
|
|
Other Liabilities |
40,144 |
|
|
42,869 |
|
|
30,641 |
|
|
Shareholders' Equity |
447,188 |
|
|
401,153 |
|
|
348,071 |
|
|
TOTAL LIABILITIES AND
EQUITY |
$3,631,268 |
|
|
$3,306,168 |
|
|
$2,726,058 |
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$35,173 |
|
|
$32,328 |
|
|
$25,552 |
|
. |
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
4.00% |
|
|
3.97% |
|
|
3.77% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN |
|
|
4.22% |
|
|
4.20% |
|
|
3.99% |
|
|
|
|
|
|
|
|
|
|
* Allowance for loan
losses excluded from average total loans and earning assets |
|
|
|
|
|
|
|
|
|
** Tax equivalent
ratios for investment securities |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES: |
|
|
|
|
TANGIBLE COMMON EQUITY
AND TANGIBLE ASSETS * |
(Dollars In Thousands, Except
Share Data) (Unaudited) |
|
Quarter Ended |
|
March 31, 2014 |
December 31, 2013 |
March 31, 2013 |
|
|
|
|
Total shareholders' equity |
$451,575 |
$439,418 |
$353,713 |
Goodwill and other intangible
assets, net |
(72,480) |
(72,752) |
(7,642) |
Tangible common equity |
$379,095 |
$366,666 |
$346,071 |
|
|
|
|
Total assets |
$3,634,466 |
$3,617,084 |
$2,756,420 |
Goodwill and other intangible
assets, net |
(72,480) |
(72,752) |
(7,642) |
Tangible assets |
$3,561,986 |
$3,544,983 |
$2,748,778 |
|
|
|
|
Common shares outstanding |
78,247,026 |
78,061,307 |
71,296,956 |
|
|
|
|
|
|
|
|
|
|
|
|
PRE-TAX, PRE-PROVISION INCOME (PTPP)
* |
|
|
|
(Dollars In Thousands) (Unaudited) |
Quarter Ended |
|
March 31, 2014 |
December 31, 2013 |
March 31, 2013 |
|
|
|
|
Net Income |
$13,113 |
$10,914 |
$11,589 |
Add Back - Income Tax Provision
(Benefit) |
6,789 |
6,075 |
5,384 |
Add Back - Provision for Losses on Loans
and Loan Commitments |
-- |
-- |
-- |
Pre-tax, Pre-Provision Income (PTPP) |
19,902 |
$16,989 |
$16,973 |
Merger Related Costs |
3,364 |
1,785 |
-- |
PTPP, Excluding Merger Related Costs |
$23,266 |
$18,774 |
$16,973 |
|
|
|
|
PTPP to Average Assets (Annualized) |
2.19% |
2.06% |
2.49% |
PTPP, Excluding Merger Related Costs to
Average Assets (Annualized) |
2.56% |
2.27% |
2.49% |
|
|
|
|
|
|
|
|
|
|
|
|
* Tangible Common Equity,
Tangible Assets, and Pre-tax, Pre-provision Income are Non-GAAP
financial measures. Management believes that presentation of
non-GAAP financial information included in this press release are
meaningful and useful in understanding the business metrics of the
Company's operations. We provide non-GAAP financial
information for informational purposes and to enhance an
understanding of the Company's GAAP consolidated financial
statements. Readers should consider this non-GAAP information
in addition to, but not instead or as superior to, the Company's
financial statements in accordance with GAAP. Non-GAAP
financial information presented by us may be determined or
calculated differently by other companies, limiting the usefulness
of non-GAAP measures for comparative purposes |
CONTACT: Alex Ko, EVP & CFO, (213) 427-6560
www.wilshirebank.com
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